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Re: m4v vs wmv for playing videos on the n7
Ok, so this is my understanding of the whole Digital Copy thing, based on prior experience. The Digital Copies that you can transfer from DVDs are DRM protected (which makes sense, because the studios would otherwise be afraid that people would download the movie, copy it, and distribute it to whomever they want). When Digital Copies were physically on DVDs (as opposed to being downloadable, which is the standard now, I think), you had the option of transferring them to your computer either on iTunes or WMP. You could only choose this ONCE--i.e., if you decided to transfer the iTunes version, and then later changed your mind and wanted the WMP version instead, you were out of luck.
If you chose the iTunes version, you could then watch the movie on iTunes on your computer or sync it with your iOS devices--but the only way you could get it onto your iOS device was to sync it, and I think you were limited to how many devices or how many times you could sync it.
The same thing applied to the WMP version, but the problem was that in order to watch it on a device, it had to sync with WMP using their now defunct PlaysForSure protocol. You couldn't just transfer the file itself to your device--if you did, you'd get a message saying the video couldn't be played. Since PlaysForSure went away in 2008, there really aren't many WMP-based options to play these Digital Copies. I think (but am not sure) that syncing the video to a non-PlaysForSure device still didn't render the video playable on the device, but others can correct me if I'm wrong.
So I don't think the N7 will play back an original Digital Copy because there's no way to reliably sync it to preserve the DRM. The only way to play it that I'm aware of is to get rid of the DRM by re-recording it using 3rd party programs like Tunebite. The "analog loophole," from what I've read, is a loophole in the digital copyright laws that makes it legal to play a digital video on your computer and use a separate program to re-record the video while it's playing in the media player. This re-recorded video is DRM-free, and as long as it's not used for monetary gain, is legal.
Nowadays, I think movie studios have stopped putting Digital Copies on the DVD to transfer, and instead give you a code to download the video from their website, typically using some proprietary download manager. I believe you still get to choose between iTunes and WMP, and the resulting video that you download still can't be transferred in a simple way to your device to watch--it still has to be synced.
Hopefully, I'm not completely wrong here and seeming like a total buffoon--but seriously, if I am wrong, by all means let me know, because things may have changed since I first started dealing with this.